AIMA Online Assignments TERM END 2020

Subject Code: FM02

Subject Name: Management Control Systems

Component name: Term end    

Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- Marginal costs and differential cost is same if:         

a)   Variable cost remains constant                       

b)   Fixed cost remains constant                       

c)   Fixed as well as variable cost remain constant                       

d)   None of these                       

Question 2:- Important components of agency cost are:

a)   Monitoring                       

b)   Binding                       

c)   Opportunity cost                       

d)   All of these                        

Question 3:- A manager, who is responsible for both cost and revenues belongs to department of:

a)   Cost center                       

b)   Revenue center                       

c)   Profit center                       

d)   Investment center                       

Question 4:- Costs which incur during temporary closure of business operation are known as:             

a)   Variable costs                       

b)   Abandonment costs                       

c)   Shutdown costs                       

d)   None of these                       

Question 5:- The part of fixed cost which can not be recovered is called:

a)   Escapable costs                       

b)   Suspension costs                       

c)   Special costs                       

d)   Sunk costs                       

Question 6:- Which of the following will not result into flow of funds?     

a)   Issue of shares for cash                       

b)   Cash sale of goods                        

c)   Purchase of machine by issue of shares                       

d)   Collection from debtors                       

Question 7:- If there is no change in fixed cost at different levels of output:              

a)   Marginal costs = Differential cost                        

b)   Marginal costs > Differential cost                       

c)   Marginal costs < Differential cost                       

d)   None of these                       

Question 8:- Performance ratios are also known as:        

a)   Efficiency ratios                       

b)   Activity ratios                       

c)   Turnover ratios                       

d)   All of these                       

Question 9:- Product profitability is best judged through:             

a)   P/V Ratio                        

b)   Gross Profit Ratio                       

c)   Operating Leverage                       

d)   None of these                       

Question 10:- Managers using capacity planning do not make:    

a)   Pricing decision                       

b)   Marketing decision                       

c)   Financing                       

d)   Cost budgeting                       

Question 11:- If fixed cost is Rs. 25000, required profit is Rs. 5000 and P/V ratio is 40 percent, the desired sales will be:       

a)   Rs. 75000                       

b)   Rs. 37500                       

c)   Rs. 42500                       

d)   Rs. 62500                        

Question 12:- An approach in which company under-costs it`s one product and over-costs at least one product is classified as:         

a)   Service-cost across subsidizing                       

b)   Product cost cross subsidizing                        

c)   Product-price cross subsidizing                       

d)   Product cross subsidizing                       

Question 13:- Shutdown point is that at which:  

a)   Total revenue = Total cost                       

b)   Price = Marginal cost                        

c)   Price = Variable cost                       

d)   None of these                       

Question 14:- An strategic business unit with declining market, declining market, cash flows and profits is termed as:       

a)   Cash cows                       

b)   Question marks                       

c)   Stars                       

d)   Dogs                       

Question 15:- Find Profit if Margin of safety is Rs 75000 and P/V ratio is 40%.     

a)   Rs. 37500                        

b)   Rs. 30000                       

c)   Rs. 42500                       

d)   Rs. 32500                       

Question 16:- Product which requires low amount of resources, but incur high per unit cost is classified as:             

a)   Product under costing                       

b)   Product over costing                       

c)   Expected under cost                       

d)   None of these                       

Question 17:- Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as:       

a)   Financial budget                       

b)   Capital budget                       

c)   Cash budget                       

d)   Balanced budget                       

Question 18:- If opportunity cost per unit is Rs. 45, incremental cost per unit is Rs. 65, then minimum transfer price will be:         

a)   Rs. 20                       

b)   Rs. 45                       

c)   Rs. 65                       

d)   Rs. 110                        

Question 19:- An approach used for choosing capacity level, having no beginning inventory is classified as:        

a)   Write off variance approach                       

b)   Write in variance approach                       

c)   Adjusted variance approach                       

d)   Unadjusted variance approach                       

Question 20:- Flow of goods and services, from start of gathering materials until delivery of products, is known as:  

a)   Flow chart analysis                       

b)   Supply chain analysis                       

c)   Resource chain analysis                       

d)   Acquiring analysis                       

Case Study

Pronto World produces three products - A, B and C by using a special type of material X. The records of store and finance department show that for every 100 tonne inventory of material X, firm gets 50 tonnes output of A, 30 tonnes output of B, and 15 tonnes output of C; while 5 tonnes of material becomes waste. The relevant cost per tonne of input for the coming year are budgeted to be: Cost of raw material - Rs. 20, and Variable processing costs - Rs. 10. The variable marketing costs are budgeted @ 10 percent of sales value. Annual budgeted fixed overheads are: Manufacturing OH - Rs. 40000, Marketing OH - Rs. 30000, and Administration OH - Rs. 20000. The firm intends to process 10000 tonnes of material X in coming year. It sells product A, B, and C at a price of Rs. 40, Rs. 60, and Rs. 80 respectively.  

Question 21:- Based on given information, the expected sales of the firm will be:

a)   Rs. 530000                       

b)   Rs. 500000                       

c)   Rs. 600000                       

d)   Rs. 450000                       

Question 22:- The P/V ratio of the firm will be:  

a)   20 percent                       

b)   25 percent                       

c)   40 percent                       

d)   30 percent                       

Question 23:- The expected net profit of the firm will be:             

a)   Rs. 400000                       

b)   Rs. 30000                       

c)   Rs. 60000                       

d)   Rs. 50000                       

Question 24:- The firm will achieve break even point at:

a)   6000 tonnes                       

b)   3000 tonnes                       

c)   4500 tonnes                       

d)   7500 tonnes                       

Question 25:- What maximum price per tonne firm can pay for raw material if its target rate of return on capital employed of Rs. 500000 is 15 percent. The input remains same at 10000 units.             

a)   Rs. 17.50                       

b)   Rs. 18.00                       

c)   Rs. 18.50                        

d)   Rs. 20.00                       

Subject Code: FM05

Subject Name: Corporate Finance

Component name: Term end

Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- As the beneficiary of a life insurance policy, you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. If you can earn 6 percent on your money, which option should you take and why? a)   You should accept the payments because they are worth $201,846 to you today.                       

b)   You should accept the payments because they are worth $201,210 to you today.                       

c)   You should accept the $200,000 because the payments are only worth $189,311 to you today.                       

d)   You should accept the $200,000 because the payments are only worth $195,413 to you today.                       

Question 2:- Which of the following should be included in the analysis of a proposed project?         

a)   Incremental and sunk costs only                       

b)   Opportunity costs, erosion, and sunk costs                       

c)   Opportunity costs and synergy only                        

d)   Synergy, erosion, opportunity costs, and incremental costs                       

Question 3:- Uptown Furniture purchased a corner lot 5 years ago at a cost of $670,000. The lot was recently valued at $640,000. At the time of the purchase, the company spent $45,000 to grade the lot and another $100,000 to pave the lot for commuter parking. The company now wants to build a new retail store on the site. The building cost is estimated at $1.6 million. What amount should be used as the initial cash flow for this building project?              

a)   "$"1,600,000                       

b)   "$"2,240,000                       

c)   "$"2,385,000                       

d)   "$"2,270,000                       

Question 4:- Roy is analyzing a 5-year project with an initial cost of $210,000, a required return of 16 percent, and a probability of success of 62 percent. If the project fails, it will generate an annual after-tax cash flow of –$48,500. If the project succeeds, the annual after-tax cash flow will be $79,000. He has further determined that if the project fails, he will shut it down after the first year and lose all of his original investment. If, however, the project is a success, he can expand it with no additional investment and increase the after-tax cash flow to $154,000 a year for Years 2–5. At the end of Year 5, the project would be terminated and have no salvage value. What is the net present value of this project at Time 0?

a)   "$"46,655.42                       

b)   "$"32,560.35                        

c)   "$"47,297.19                       

d)   "$"62,543.35                       

Question 5:- When comparing levered versus unlevered capital structures, leverage works to increase EPS for high levels of EBIT because interest payments on the debt ___________      

a)   increase as EBIT increases.                       

b)   stay fixed, leaving more income to be distributed over fewer shares.                       

c)   stay fixed, leaving less income to be distributed over fewer shares.                       

d)   decrease as EBIT increases.                       

Question 6:- Which one of these events might cause the biggest challenge to the MM propositions?  

a)   An increase in the corporate tax rates                       

b)   A decrease in the cost of debt                       

c)   A change in tax laws to treat interest and dividends equally                       

d)   An increase in a firm`s unlevered WACC                       

Question 7:- What does the present value of the tax shield from debt formula assume?            

a)   The debt is perpetual.                       

b)   The interest rate on the debt is less than cost of equity.                       

c)   The debt will not be replaced when paid.                       

d)   Interest on the debt is paid only when the debt matures.                       

Question 8:- Simpson`s is an all-equity firm that has 400,000 shares of stock outstanding. The company is in the process of borrowing $1.5 million at 5 percent interest to repurchase 30,000 of the firm`s outstanding shares. Ignore taxes. What will be the market value of equity after the repurchase?              

a)   $20.0 million                       

b)   $19.2 million                       

c)   $18.5 million                       

d)   $19.8 million                       

Question 9:- Which one of these statements is a correct implication of the pecking order theory?   

a)   Companies like financial slack so they can reduce their external capital needs.                       

b)   External financing should be limited to debt issues.                       

c)   The target debt level occurs when the marginal benefit of debt equals the marginal cost of debt.                       

d)   Profitable firms use more debt.                        

Question 10:- A highly automated plant would generally have    

a)   more variable than fixed costs.                       

b)   more fixed than variable costs.                       

c)   all fixed costs.                       

d)   all variable costs.                       

Question 11:- If a firm has fixed costs of $60,000, a sales price of $7.00 per unit, and a break-even point of 25,000 units, the variable cost per unit is _____.

a)   "$"5.00                       

b)   "$"4.60                        

c)   "$"5.40                       

d)   "$"4.00                       

Question 12:- If a firm with $49,000 in fixed costs breaks even on 7,000 units, how many units must the firm sell to earn $30,000 in operating profit?  

a)   30,000 units                       

b)   15,824 units                       

c)   11,286 units                       

d)   There is not enough information to determine the unit sales required.                       

Question 13:- A conservatively financed firm would        

a)   use long-term financing for all fixed assets and short-term financing for all other assets.                       

b)   finance a portion of permanent assets and short-term assets with short-term debt.                       

c)   use equity to finance fixed assets, use long-term debt to finance permanent assets, and use short-term debt to finance fluctuating current assets.                       

d)   use long-term financing for three items: permanent current assets, fixed assets, and a portion of the short-term fluctuating assets. Then use short-term financing for all other short-term assets.                       

Question 14:- A firm will usually increase the ratio of long-term debt to short-term debt when             

a)   short-term debt has a lower cost than long-term equity.                       

b)   future interest rates are expected to increase.                        

c)   long-term debt has a lower cost than long-term equity.                       

d)   future interest rates are expected to decrease.                       

Question 15:- The York Company has arranged a line of credit that allows it to borrow up to $53 million at any time. The interest rate is .629 percent per month. Additionally, the company must deposit 3 percent of the amount borrowed in a non-interest bearing account. The bank uses compound interest on its line-of-credit loans. What is the effective annual rate on this line of credit?   

a)   7.15%                       

b)   8.06%                       

c)   7.81%                       

d)   8.95%                       

Question 16:- Which of the following could be the cause of a lengthening cash cycle?        

a)   Increasing the inventory turnover                       

b)   Issuing credit to less credit-worthy customers than in previous periods                       

c)   Increasing the accounts payable period                       

d)   Extending the time period before paying a supplier for a credit purchase                       

Question 17:- Which one of these statements is correct?             

a)   If a firm adopts a restrictive short-term financial policy, its current assets will be greater than if it adopts a flexible policy.                       

b)   If a firm switches from a flexible short-term financial policy to a restrictive policy, it is likely to see an increase in its uncollectible accounts receivable.                       

c)   If a firm switches from a restrictive short-term financial policy to a flexible policy, its operating cycle will most likely decrease.                       

d)   Future cash flows are expected to be higher if a firm adopts a flexible, rather than a restrictive, short-term financial policy.                       

Question 18:- D&M sells its inventory in 67 days on average. Their customers generally charge their purchases on a credit card with payment being received in 2 days. The company takes 61 days on average to pay for its purchases. Given this information, what is the length of the company’s cash cycle?  

a)   42 days                       

b)   36 days                       

c)   17 days                       

d)   8 days                       

Question 19:- In a true merger, not a consolidation, the acquirer              

a)   and the target firm become a new firm with a new name.                       

b)   accepts the responsibility for the debts of the target firm.                        

c)   obtains only the assets of the target firm.                       

d)   is totally absorbed by the acquired firm.                       

Question 20:- Which one of these defines the maximum price that a bidder should pay for a target firm?      

a)   Summation of the target firm`s market value plus the value of the synergy created by the merger                       

b)   Summation of the target firm`s market value plus the merger premium minus any long-term debt                        

c)   An amount equal to the premium created by a merger of the bidder and target firms                       

d)   Target firm`s total market value as a stand-alone entity                       

Case Study

Deepti Machine Tools is considering replacing an existing machine with a new machine costing Rs. 20,000. The older machine was fully depreciated to its actual salvage value of Rs. 2,000 prior to 2019. The new machine will be depreciated over its ten-year projected life using straight line depreciation and will have a Rs. 3,000 salvage value. It is anticipated that the new machine will reduce labour cost by Rs.3,000 per year. Their cost of capital is 14% and their marginal tax rate is 40%. Deepti`s Income Statement 2019 provides the following information:

Sales = Rs. 2,50,000;

Total expenses = Rs. 2,15,000 which includes :Materials = 75,000; Labour = 1,00,000; Administration = 21,000; Depreciation = 19,000.          

Question 21:- If Deepti buys the machine how will the after tax profit get impacted?         

a)   It will increase by Rs. 3,000                       

b)   It will increase by Rs. 1,300                       

c)   It will increase by Rs. 780                       

d)   Will not get impacted.                       

Question 22:- If Deepti requires an after-tax return on investment of 14% should they buy the new machine?        

a)   No, as the NPV is negative                       

b)   Yes, as the NPV is positive                       

c)   Yes , because the after tax profit increases                       

d)   Yes, because the after tax cash-inflow increases                       

Question 23:- If the cost of capital is 14% what will be the NPV of the buying the machine?   

a)   4,255                       

b)   2480                       

c)   -4255                       

d)   -2480                       

Question 24:- Assume the old machine could get sold for Rs. 6,000. And the tax rate is increased to 48%.How would it impact the cash outflow for the new machine?  

a)   The cash outflow would now be Rs. 15,920                       

b)   The cash outflow would now be Rs. 18,000                       

c)   The cash outflow would now be Rs. 17,000                       

d)   None of the above are correct                       

Question 25:- Assume the old machine could get sold for Rs. 6,000 and the tax rate is increased to 48%. Would this affect the profitability of the project?              

a)   Is still profitable as the NPV is positive                       

b)   Is still profitable as the after tax profit increases                       

c)   Is still profitable as the after tax cash-inflow increases                       

d)   Is rejected as the NPV is negative                        

             

Subject Code: FM11

Subject Name: FINANCIAL AND MANAGEMENT ACCOUNTING

Component name: TERM END   Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- Which of the following is not a technique used in management accounting:       

a)    Budgetary control                       

b)    Marginal costing                       

c)    Process Costing                       

d)    Standard costing                       

Question 2:- Margin of safety can be improved by :         

a)    Increase of variable cost per unit                       

b)    Decrease of sale price per unit                       

c)    Increase of fixed costs                       

d)    Decrease of variable cost per unit                       

Question 3:- Zero based budgeting means:         

a)    Taking zero as the starting point in calculating the forthcoming year`s overhead cost.                       b)    A budgeting system where variances are zero due to strict financial control.                                 

c)    Preparing a budget of zero where any spending will result in an adverse variance                       

d)    A budget including the activity level of zero.                       

Question 4:- Cost drivers are:    

a)    Characteristics of an activity or event that causes costs to be incurred by that activity or event.                        b)    Accounting techniques used to control costs.                       

c)    Accounting measurements used to evaluate whether or not performance is proceeding according to plan.                            

d)    Both (a) and (b) above                       

Question 5:- The difference between the budget amount and the best estimate is called:          

a)    Variance                       

b)    Contingency provision                       

c)    Slack                       

d)    Standard error                       

Question 6:- Material yield variance is favourable if the 

a)    Standard quantity for the actual output exceeds actual quantity.                       

b)    Standard output is more than actual output.                       

c)    Actual output exceeds over standard output                       

d)    Actual quantity exceeds standard quantity for actual output.                       

Question 7:- Vipin Ltd. provides you the following information pertaining to the first quarter ended June 30, 2019: Fixed expenses - Rs 22,500 ; Sales value- Rs 75,000; Profit - Rs 15,000. The margin of safety first quarter ended June 30, 2019 is:            

a)    Rs 30,000                       

b)    Rs 45,000                       

c)    Rs 60,000                       

d)    Rs 1,29,100                       

Question 8:- The budgeted per unit cost data of a toy manufacturing company is: Material- Rs 18; Labour- Rs 9; Variable cost- Rs 8; Selling price- Rs 50. The budgeted production and sales is 1,50,000 units. Fixed overhead incurred is Rs 4,00,000. The total profit if price is decreased by 25% and volume of sales increase by 30% is:        

a)    Rs 87,500                       

b)    Rs 42,900                       

c)    Rs 55,600                       

d)    Rs 61,900                       

Question 9:- Tanu Ltd. uses predetermined overhead rate of Rs. 15 per labour hour, the actual overhead cost is Rs. 85,000 and actual labor hour are 5,750. The under or over absorption of overhead is:       

a)    Rs 1,250 (over)                       

b)    Rs 1,250 (under)                       

c)    Rs 1,000 (over)                        

d)    Rs 1,000 (under)                       

Question 10:- The budgeted cost of electricity is Rs 62,500 for 5000 units of production per month and Rs 71,500 for 6,200 units of production per month. If the company manufactures 6,900 units in the month of May 2003, the budgeted amount of electricity for the month is:                    

a)    Rs 74,360                      

b)    Rs 76,750                       

c)    Rs 77,770                       

d)    Rs 79,572                        

Question 11:- ADT Ltd. has furnished the following standard cost data per unit of output. Direct labor 10 hours at Rs 7.50 ,Rs 75. Direct wages paid Rs 4,07,000 for 55,000 hours worked per hour at Rs 8.50 per hour Rs 85. Actual output 4,900 units. The labor efficiency variance is:        

a)    Rs 50,000 favorable                       

b)    Rs 55,500 (favorable)                       

c)    Rs 35,000 (Adverse)                       

d)    Rs 45,000 (Adverse)                       

Question 12:- A contractor has to supply 8,000 paper cones per day to a textile mill. He finds that when he starts a production run he can produce 35,000 paper cones per day. The cost of holding a paper cone in stock for one year is 3 paise and setting up cost of production run is Rs. 20. The Economic Batch Quantity (EBQ) is:          

a)    62,397 units                       

b)    63,497 units                       

c)    64,567 units                       

d)    65,765 units                       

Question 13:- Following information is provided for the year 2019: P/v ratio- 30% ; Margin of safety- 40%; Sales- Rs 12,00,000. Compute the fixed cost.             

a)    Rs 3,90,800                       

b)    Rs 2,16,000                       

c)    Rs 5,20,500                       

d)    Rs 1,10,200                       

Question 14:- X company has furnished the following standard cost data per unit of output. Direct material 25 kg @ Rs 12 per kg Rs 300. The following information for the month of June 2005 is provided: Direct material used 1,25,000 kg at a cost of Rs 14,37,500; Actual output: 4,900 units. The material price variance is :          

a)    Rs 62,500 favorable                       

b)    Rs 57,000 adverse                       

c)    Rs 60,000 adverse                       

d)    Rs 65,000 favorable                       

Question 15:- ABM Ltd. has furnished the following information for Rs 4,000 units of a product for the year 2002-2003: Direct material Rs 2,50,000; Direct labor Rs2,00,000; Manufacturing overheads Rs 2,80,000 (40% fixed); Selling and administrative overheads Rs 2,70,000 (30% fixed). The total cost of 4,380 units is:

a)    Rs 10,95,000                       

b)    Rs 10,42,500                       

c)    Rs 10,80,120                       

d)    Rs 10,76,665                       

Question 16:- The monthly flexible overhead budget and activities of Forest Ltd. are as follows: Machine hours - 4,000; 5,200; 6,500 and Budgeted monthly overhead cost (Rs)- 98,000; 1,12,400; 1,28,000 respectively. The budgeted fixed overhead cost per month at the level of 6,800 machine hours is:                        

a)    Rs 30,000                       

b)    Rs 40,000                       

c)    Rs 45,000                       

d)    Rs 50,000                       

Question 17:- During the Financial Year 2019-2020, A Ltd purchased machinery worth. Rs.20 Lakhs from V Ltd. A Ltd. discharged the payment by issue of its Equity shares of Rs.15 Lakhs and balance payment was made in cash. It also sold another machinery for Rs. 10 Lakhs. Calculate the cash flows from Investing Activities.            

a)    (-) Rs. 5 lakhs                       

b)    Rs. 5 Lakhs                       

c)    Rs.10 Lakhs                       

d)    (-)Rs.15 Lakhs                        

Question 18:- Which of the given technique should be used to compare the performance of two businesses, one having Rs.100 crore turnover and the other having Rs. 25 crore turnover         

a)    Ratio Analysis                       

b)    Comparative Statements                       

c)    Common Size Statement                       

d)    Cash Flow Statement                       

Question 19:- Interest paid by a Finance Company will be Cash flows from…………..activity?    

a)    Operating                       

b)    Investing                       

c)    Financing                       

d)    Cash & Cash Equivalents                       

Question 20:- ABV Ltd. provides you with the following information: Provision for tax at the start of the year and at the end of the year was Rs.1,20,000 and Rs.1,50,000 respectively. The provision for tax made during the year was Rs.1,20000. What was the amount of tax paid during the year?             

a)    Rs.1,50,000                       

b)    Rs.90,000                       

c)    Rs.1,20,000                       

d)    None of the above                       

Case Study

FG Utensils is in the manufacturing of household utensils for the last 10 years. At the year end, Mr. Kumar, the Finance Manager called the production manager Mr. Sohan and asked him about the details of the production and the expenses incurred for the year. Mr. Sohan the following details with the finance manager: The company follows standard costing system. During the year 5,000 units were produced and the direct material consumed was 20,500 kg. The price of raw material is Rs.2.60 per kg. The direct labour cost and variable overhead incurred were Rs. 57,750 and Rs.32,400 respectively. The variable overhead efficiency is Rs. 3,000 (unfavorable). Variable overheads are based on direct labor hours. There was no stock of raw material at the beginning of the month. The standard cost data per unit of output is Direct material 4 Kg@ Rs.2.50/ kg, Direct labor 2 hours @Rs.6/hour and Variable overhead 2 hours @Rs.3/hr.   

Question 21:- The variable overhead efficiency variance would be ?                      

a)    Rs. 3,000 Favourable                       

b)    Rs. 3,500 adverse                       

c)    Rs. 3,000 Adverse                        

d)    Rs. 3,200 Adverse                       

Question 22:- The aggregate of total material, labor and variable overhead variance ?          

a)    Rs.3,500 Adverse                       

b)    Rs.3,450 Favourable                       

c)    Rs.3,550 Favourable                       

d)    Rs.3,450 Adverse                       

Question 23:- The material price variance is in excess of usage variance by ………….

a)    Rs.800 Adverse                       

b)    Rs.850 Favourable                        

c)    Rs.800 Favourable                       

d)    Rs.1,050 Adverse                       

Question 24:- The variable overhead budget variance would be 

a)    Rs.700 Adverse                       

b)    Rs.600 Adverse                        

c)    Rs.900 Adverse                       

d)    Rs.650 Adverse                       

Question 25:- The aggregate of material cost and labor cost variance is ?              

a)    Rs.1100 Favourable                       

b)    Rs.1150 Favourable                        

c)    Rs.1050 Adverse                       

d)    Rs.1000 Adverse                

             

Subject Code: FM12

Subject Name: FINANCIAL MANAGEMENT

Component name: TERM END   Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- The present value of Rs 20,000 to be received after five years from now assuming 6% time preference for money is :   

a)   14,940                       

b)   16,776                       

c)   12,551                       

d)   11,500                       

Question 2:- Operating cycle can be delayed by:

a)   Increase in WIP period                        

b)   Decrease in raw material storage period.                       

c)   Decrease in credit payment period.                       

d)   Both (a) and (c) above                       

Question 3:- Given the following information about Nile ltd. The market price of its share using the Walter`s model is Rs. ___________ Equity capitalisation rate (Ke)= 16% , Earnings per share (E) = Rs 13, Dividend paid out ratio = 25% , Assume return on investment is 14%.    

a)   73.6                       

b)   56.45                       

c)   80.3                       

d)   71.22                       

Question 4:- Which of the following is a factor influencing the credit policy of a firm?          

a)   Cash credit limit                       

b)   Average payment period                       

c)   Collection effort                       

d)   Outstanding creditors                       

Question 5:- Axis ltd. is issuing 15% debentures (face value Rs 60). The net amount realized per debenture is Rs 54, and they are redeemable at par after 6 years. At a corporate tax rate of 40%, what is the cost of debt?

a)   16.54%                       

b)   17.54%                       

c)   11.23%                       

d)   14.74%                       

Question 6:- If the required rate of return in Excel Ltd.`s shares is 16%, risk free rate of return is 8%, and the rate of return on market portfolio is 11%, what is the `beta` of the stock? 

a)   1.67                       

b)   2.67                       

c)   0.38                       

d)   2.87                       

Question 7:- The market value of equity and debt is Rs 10,00,000 and Rs 5,00,000 respectively. The cost of equity is 18% and that of debt is 13%. If the tax rate is 35%, the weighted average cost of funds taking market value as weighted is :

a)   13%                       

b)   13.82%                       

c)   14%                       

d)   14.62%                       

Question 8:- If the net present value for a project is negative, then :        

a)   IRR=Cost of Capital                       

b)   IRR> Cost of Capital                       

c)   BCR >1                       

d)   IRR< Cost of Capital                       

Question 9:- If the degree of operating leverage of a company is increased by 30% while the degree of financial leverage is decreased by 20%. What will be the change in the degree of total leverage?   

a)   2% increase                       

b)   3% increase                       

c)   4% increase                        

d)   2% decrease                       

Question 10:- A firm`s present market price of the share is Rs 40 and its EPS is Rs 12. The firm is planning to declare 45% of this as dividends. If the firm reinvests its retained earnings at the rate of 14%, the cost of its equity according to Gordon dividend capitalization model is:    

a)   20%                       

b)   21.20%                       

c)   22%                       

d)   26.20%                       

Question 11:- If the net working capital is negative then it indicates that:             

a)   Long tem funds have been used for financing short term assets.                       

b)   Long term funds have been used for financing long term assets.                       

c)   Short term funds have been used for financing long term assets.                       

d)   Short term funds have been used for financing short term assets.                       

Question 12:- The following information is available for Navkar and Co. : EBIT Rs 20,20,000 ; Profit before tax Rs 13,20,000 ; Fixed costs Rs 7,00,000. The percentage change in EPS is ................, if the sales are expected to increase by 5%. 

a)   16.02%                       

b)   24.87%                       

c)   25.50%                        

d)   10.25%                       

Question 13:- Which of the following is a technique for monitoring the status of the receivables?        

a)   Ageing Schedule                       

b)   Outstanding creditors                       

c)   Selection matrix                        

d)   Funds flow analysis                       

Question 14:- The cash flows from a project is estimated as follows: Year 0- Rs 160 lakh, Year 1- Rs 60 lakh, year 2- Rs 80 lakh, year 4- Rs 116 lakh. The benefit cost ratio for the above project is ( Assume the cost of capital as 12%):             

a)   0.25                       

b)   0.8                       

c)   1.25                       

d)   1.8                       

Question 15:- The net cash flow from a project (with initial investment of Rs 16,20,000) are as follows: year 1- Rs 2,00,000; year 2- Rs 4,00,000; year 3- Rs 5,00,000; year 4- Rs 5,20,000; year 5- Rs 5,25,000; year 6- Rs 5,40,000; year 7- Rs 6,50,000. What is the pay back period for the above project            

a)   2 years                        

b)   3 years                       

c)   4 years                       

d)   5 years                       

Question 16:- Which of the following is not a money market instrument:

a)   Treasury bill                       

b)   Commercial papers                       

c)   Convertible debentures                       

d)   Certificate of deposits                       

Question 17:- The average daily cost of production is Rs 35 lakh and average conversion period is 3 days. The closing stock work in progress is 10% higher than the opening stock of work in process. The value of closing stock of work in progress is:   

a)   100 lakhs                       

b)   110 lakhs                       

c)   120 lakhs                        

d)   130 lakhs                       

Question 18:- During the four busiest days in a month od March, the firm` cash outflows were Rs 20,000; Rs 30,000; Rs 40,000 and Rs 50,000. The Finance Manager desires sufficient cash to cover payments for 4 days during the peak periods. The safety levels is Rs:

a)   1,10,000                       

b)   1,40,000                       

c)   1,20,000                       

d)   1,00,000                       

Question 19:- If the current assets and current liabilities are Rs 2,000 lakh and Rs 1,200 lakh respectively. How much amount can be borrowed on a short term basis without reducing current ratio below 1.5?         

a)   Rs 400 lakh                       

b)   Rs 1,000 lakh                       

c)   Rs 1,200 lakh                        

d)   Rs 1,400 lakh                       

Question 20:- The following details pertain to Anand Industries Ltd: Average stock of work in progress Rs 16 lakh; Annual cost of production Rs 160 lakh. Assume 360 days in a year. The work in process period for the company is :             

a)   10 days                       

b)   16 days                       

c)   23 days                       

d)   36 days                       

Case Study

ADG Ltd. is considering investing in a new start-up project. The company has a plan that after five years it will sell the project at a good profit to a big Industrialist. The project outlays are Land Rs.80 Lakhs, Plant & Machinery Rs. 500 Lakhs, Building Rs.100 Lakhs, Gross working capital Rs. 450 Lakhs, Other fixed assets Rs.100 Lakhs and technical knowhow fees Rs.160 Lakhs. The project will be financed by Equity Share capital of Rs. 500 Lakhs, 16% Term Loan Rs.300 Lakhs,12% Preference Share Capital Rs. 250 Lakhs and 18% Bank Loan for Working Capital Rs. 340 Lakhs. The unit is expected to generate sales value of Rs.10 Crores in the first year, Rs.12 Crores in the second year and Rs.15 Crores for the next three years. The cost of production (excluding depreciation) would be 70% of sales. The depreciation to be charged on building @4% on Original cost method & 33.33% on Plant & Machinery and other assets as per Written down value method. The technical knowhow fees will be written off over a period of 5 years. The salvage value of Plant & Machinery after 5 years would be 20% of its acquisition cost, book value for Land & Building and nil for other fixed assets. The term loan for the project will be repaid after 5 years when the project would be sold. The tax rate applicable is 30%.          

Question 21:- The total net salvage of Plant & Machinery and other fixed assets in the last year?  

a)   320                       

b)   300                       

c)   280                       

d)   270                       

Question 22:- The Net Present value at cost of capital of 20%      

a)   Rs.82 Lakhs                       

b)   (-) Rs.75 Lakhs                       

c)   Rs.19.87 Lakhs                       

d)   (-) Rs.72.15 Lakhs                       

Question 23:- The Profitability Index at cost of capital is 20%       

a)   0.93                        

b)   0.82                       

c)   1.12                       

d)   0.98                       

Question 24:- The total depreciation on Plant & Machinery and other fixed assets in the last year?  

a)   Rs.38.99 Lakhs                        

b)   Rs.43.51 Lakhs                       

c)   Rs.45.89 Lakhs                       

d)   Rs. 51.47                       

Question 25:- Will your recommendation change, if an additional cash flow of Rs. 5 crores arise by disposing of the project?

a)   The project is having a positive NPV of Rs.210.45 Lakh, so project is accepted                       

b)   The project is having a negative NPV of (-) Rs.128.79 Lakh, so project is not accepted                        

c)   The project is having a positive NPV of Rs.300.75 Lakh, so project is accepted                       

d)   The project is having a positive NPV of Rs.128.79 Lakh, so project is accepted                       

Subject Code: GM03

Subject Name: Business Statistics

Component name: Term end

Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

 Question 1:- Descriptive statistics deals with

a)   description of the data collected                       

b)   drawing inferences based on data collected                       

c)   both (a) and (b)                       

d)   None of these                        

Question 2:- Inferential statistics deals with

a)   drawing inferences based on data collected                       

b)   drawing inferences about population based on a sample information                       

c)   both (a) and (b)                        

d)   None of these                       

Question 3:- Identify which level of measurement is the following data represent "colour of cars that is standing at a market place"

a)   nominal                       

b)   ordinal                        

c)   interval                       

d)   ratio                       

Question 4:- To describe the quantity of wheat , rice, sugar produced by farmers during a year is best represented by

a)   Pie-chart                       

b)   histogram                       

c)   bar chart                       

d)   All of the above                       

Question 5:- To describe the age profile of customers of a company it is best represented by

a)   histogram                       

b)   bar chart                       

c)   both (a) and (b)                       

d)   Bar-chart                       

Question 6:- most appropriate measure of central tendency for a ordinal data is

a)   mean                       

b)   mode                       

c)   median                       

d)   All of the above                       

Question 7:- If a value of 5 is multiplied to each value of a data set whose mean is 30, then the mean of the new data set will be

a)   30                       

b)   150                       

c)   450                       

d)   cannot answer without the data set                        

Question 8:- Find the standard deviation of the population whose data set consists of 2,4,6,8,10,12,14

a)   16                       

b)   4                       

c)   64                       

d)   112                       

Question 9:- If Prob ( A) = 0.5, Prob(B)=0.6 and P(AUB) =0.7, then P(A∩B) is equal to

a)   0.4                       

b)   0.8                       

c)   0.6                       

d)   0.24                       

Question 10:- If A and B are independent of each other and if Prob(A) = 0.3 and Prob ( B) =0.6 then Prob ( A∩B) is equal to

a)   0.6                       

b)   0.18                       

c)   0.3                       

d)   0.1                        

Question 11:- The probability of a person winning a lottery for Rs. 1 lakhs is 0.002 and he pays Rs. 300 to buy a ticket. The expected profit for the company is Rupees

a)   100000                       

b)   300                       

c)   100                        

d)   500                       

Question 12:- For a Binomial distribution if number of trials is 5 and probability of success is 0.5, then the probability of getting all success is equal to

a)   0.5                       

b)   0.25                        

c)   0.025                       

d)   0.031                       

Question 13:- For a Binomial distribution if the number of trials is 20 and the probability of success is 0.2 then the expected value is equal to

a)   0.2                        

b)   2                       

c)   4                       

d)   3.2                       

Question 14:- For a Binomial distribution if the number of trials is 20 and the probability of success is 0.2 then the variance is equal to

a)   0.2                       

b)   2                       

c)   4                       

d)   3.2                       

Question 15:- The average number of wrong despatch of electric bills is believed to be 1.5 per 1000 connections. If a random sample of 100 connections is considered what is the probability of getting zero defective bills. (e^-0.15 = 0.86)

a)   0.86                        

b)   0.223                       

c)   0.192                       

d)   0.037                       

Question 16:- The mean value of a Poisson distribution is 9, the standard deviation of the distribution is

a)   9                        

b)   3                       

c)   0.9                       

d)   0.3                       

Question 17:- If a variable is normally distributed with a mean of 80 and standard deviation of 20 then the probability that the variable will take values between 60 to 120 will be

a)   0.5                       

b)   0.815                       

c)   0.95                       

d)   0.997                       

Question 18:- If a variable is normally distributed with a mean of 100 and standard deviation of 20, the probability that the variable will be greater than 120 will be

a)   0.159                       

b)   0.05                       

c)   0.95                       

d)   0.841                       

Question 19:- If the correlation between two variables is 0.8 it means that

a)   80% of the variation in one variable can be explained by the second variable                       

b)   40% of the variation in one variable can be explained by the second variable                       

c)   32% of the variation in one variable can be explained by the second variable                       

d)   64% of the variation in one variable can be explained by the second variable                       

Question 20:- If the regression coefficient for Y on X is 1.3 and the regression coefficient for X on Y is 0.6, then correlation coefficient between X and Y is equal to

a)   0.78                        

b)   0.608                       

c)   0.883                       

d)   cannot be found                       

Case Study

A company was filling oil in oil cans which had a nominal capacity of 5000 ml. As per the standards oil fill in a can should not contain less than 5000 ml since customer is paying for 5 litres. To check this the firm randomly samples 36 cans and finds that the mean fill in the sample of 36 cans is 4950 ml. The population standard deviation of fill can be considered as 150 ml. The amount of fill in the population of cans is believed to be Normally distributed. Based on the above answer the following questions:

Question 21:- The null and alternative hypothesis for the above problem is

a)   Null: µ = 5000ml Alternative µ >5000 ml                       

b)   Null: µ ≥= 5000ml Alternative µ < 5000 ml                       

c)   Null: µ ≤ 5000ml Alternative µ > 5000 ml                       

d)   Null: µ = 5000ml Alternative µ ≠ 5000 ml                       

Question 22:- For the above problem we shall be using

a)   Z test                       

b)   t- test                       

c)   either (a) or (b)                       

d)   F - test                       

Question 23:- If the sample size in the above problem had been only 20 instead of 36, then we would use

a)   Z test                       

b)   t- test                       

c)   either (a) or (b)                       

d)   F - test                       

Question 24:- The calculated value of the test statistic for the above problem would have been

a)   2                       

b)   minus 2                       

c)   0.33                       

d)   minus 0.33                       

Question 25:- For a type I error of 5% we would accept or reject the null hypothesis based on obtained ( table value =1.645)

a)   accept null hypothesis                       

b)   reject null hypothesis                       

c)   cannot conclude                        

d)   test is wrong

             

Subject Code: GM04

Subject Name: MANAGERIAL ECONOMICS

Component name: TERM END   Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- …………………………………..is economics applied to decision making.

a)    Micro Economics                       

b)    Macro Economics                       

c)    Indian Economy                       

d)    Managerial Economics                       

Question 2:- Significance of Managerial Economics is-    

a)    Enable managers to become more competent model builder                       

b)    Helpful in evaluating choices                       

c)    Helps in taking business decisions                       

d)    All of the above                       

Question 3:- The opportunity cost of using idle machine is………………...    

a)    Zero                       

b)    Positive                       

c)    Negative                       

d)    One                       

Question 4:- The demand curve has…………………….slope as being consistent with Law of Demand.    

a)    Positive                       

b)    Negative                       

c)    Direct                       

d)    Indirect                       

Question 5:- ……………………………is when the quantity demanded of the good increases as a result of fall in its price, other determinants remaining constant.           

a)    Extension of demand                       

b)    Contraction of demand                       

c)    Direct demand                       

d)    Indirect demand                       

Question 6:- The price of the good decreases from Rs.2,000 to Rs.1,000 and the quantity demanded of good increases from 5,000 to 6,000 units. Which of the following is true  

a)    The income elasticity is +2                       

b)    The income elasticity is +5                       

c)    The price elasticity is .4                       

d)    The price elasticity is 2.5                       

Question 7:- ……………………..is the locus of all technically efficient methods or combination of inputs for producing given level of output.          

a)    Indifference curve                       

b)    Isoquant                       

c)    Product line                       

d)    None of these                       

Question 8:- ………………………………is considered as the slope of Indifference curve   

a)    Marginal curve                       

b)    Marginal rate of Technical Substitution                       

c)    Marginal rate of Substitution                       

d)    None of these                       

Question 9:- Which one of the following property of isoquant is incorrect             

a)    Isoquants are convex to origin                       

b)    Isoquants do not intersect                        

c)    Isoquants have positive slope                       

d)    Upper isoquants represent higher level of output                       

Question 10:- There is no unique supply curve in ………………………….market                            

a)    Perfect competitive                        

b)    Monopoly                       

c)    Monopolistic                       

d)    Oligopoly                       

Question 11:- What are the necessary conditions for the price discrimination to take place?   

a)    Different markets must be separable for a seller                       

b)    Elasticity of demand must be different in different markets                       

c)    There must be effective separation of sub markets so that no reselling can take place                       

d)    All of the above                       

Question 12:- State True or False - In scenario like Pandemic COVID-19, Law of demand does not hold true.  

a)    true                       

b)    false                       

Question 13:- Which of the following determinants effect demand of gold?             

a)    Price                       

b)    Festive season                       

c)    Income                       

d)    All of the above                       

Question 14:- If the price of a commodity decreases, the consumer`s real income increases. The change in consumer basket due to change in real income is called………………………….           

a)    Income effect                       

b)    Substitution effect                       

c)    Household effect                       

d)    Keynes effect                       

Question 15:- Conditions which must be satisfied for consumer to be in equilibrium-     

a)    Slope of Indifference curve must be equal to slope of budget line                        

b)    At the point of equilibrium , indifference curve is convex to origin                       

c)    Both A and B                       

d)    None of these                       

Question 16:- Want satisfying power of a commodity is known as…………………..

a)    Demand                       

b)    Supply                       

c)    Utility                       

d)    Equilibrium                       

Question 17:- The theory of sales revenue maximization as the most important goal of managers is given by ……………………     

a)    Baumol                       

b)    Marris                       

c)    Cyert and march                       

d)    Williamson                       

Question 18:- In Game theory each decision maker called player has well defined choices to make called……………..             

a)    Strategy                       

b)    Rules                       

c)    Payoff matrix                       

d)    None of these                       

Question 19:- Kinked demand curve model explains………………    

a)    Elasticity of demand                       

b)    Stickiness of Price                       

c)    Profitability ratio                       

d)    Conditions for loss                       

Question 20:- Which of the following are categorized as non collusive oligopoly models-          

a)    Cartels                       

b)    Price leadership model                       

c)    Cournots Duopoly model                       

d)    None of these                       

Case Study

Hindustan Unilever Limited being the leading company in the FMCG sector. It is the largest share holder of the FMCG sector in the Indian market. It was founded in November 1956 and its based in Mumbai, Maharashtra. The mission statement of HUL is, “add vitality to life”. Findings of the research done on the life cycle of HUL, along with its strong presence in the market due to its highest shares in the FMCG market show that HUL has a strong market base which is spread strategically in all the market segments under soaps and detergents due to so many brands by HUL. Also we see there are a lot of emerging competition to the HUL’s soaps and detergent market share and how it has and will continue to tackle these competitions. .HUL in the light of all the competition, is constantly innovating new products so as to dominate the market Additionally we see the HUL firm’s life cycle, along with an understanding of a monopolistic market. Furthermore we see into one of the competitor’s downfall in the soaps and detergent market. In conclusion, this study shows HUL has a strong market share in the soaps and detergent sector. Unlike other companies, HUL has its base under all the segments, thus targeting a wide range of consumers.    

Question 21:- Under which market do you categorize the soap and detergent products from HUL?

a)    Monopolistic Competition                       

b)    Monopoly                       

c)    Perfect Competition                       

d)    Oligopoly                       

Question 22:- Inspite of severe competition HUL was able to have strong market base due to-      

a)    Innovation                       

b)    Branding of Products                       

c)    Both A and B                       

d)    None of these                       

Question 23:- Which of the following is /are the characteristics of this kind of market categorization?

a)    Large number of Sellers                       

b)    Product Differentiation                        

c)    Perfect factor mobility                       

d)    All of the above                       

Question 24:- Who gave this model of market?  

a)    Chamberlin                       

b)    P Swezzy                       

c)    Manmohan Singh                       

d)    Adam Smith                       

Question 25:- This market is combination of which two markets

a)    Monopoly plus perfect competition                       

b)    Monopoly plus Oligopoly                       

c)    Monopolistic competition plus Oligopoly                       

d)    Monopolistic Competition plus Perfect competition      

             

Subject Code: GM06

Subject Name: BUSINESS LAW & CORPORATE GOVERNANCE

Component name: TERM END   Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- Which of the following provision(s) in the Companies Act 2013, help improve Corporate Governance in a Company?      

a)   The shareholders have a right to appoint the directors.                       

b)   The shareholders have a right to appoint auditors to audit the accounts                       

c)   Directors can be removed just by passing an ordinary resolution, even before their term expires.                       

d)   All the three provisions listed under A, B, and C.                       

Question 2:- The expression `independent director` is explained as a non-executive director if certain conditions are satisfied. Which one of the following conditions will disqualify a person for appointment as Independent director?           

a)   He has a material pecuniary relationships or transactions with the company or its promoters                        

b)   He has not been an executive of the company in the immediately preceding three financial years.                       

c)   He is not related to promoters or persons occupying management positions at the board level or at one level below the board.                       

d)   All the three conditions listed under A, B, and C.                       

Question 3:- Point out the correct statement relating to a contract for sale of Goods:          

a)   The subject matter of the contract must necessarily be goods                       

b)   A contract of sale may be absolute or conditional                       

c)   Transfer or agreement to transfer the ownership of goods                       

d)   All the three conditions listed under A, B, and C.                       

Question 4:- There was a sale of ‘foreign refined rape-oil’ warranted only equal to sample. The oil supplied was the same as the sample, but it was not ‘foreign refined rape-oil, being a mixture of it and other oil. Can the buyer refuse to accept the delivery?   

a)   No, as it is only a breach of warranty                       

b)   No, breach has taken place as the oil supplied is the same as the sample.                       

c)   Yes there is a breach of conditions the oil supplied does not match the description.                       

d)   None of the options is true                       

Question 5:- Which of the documents is NOT an example of a Negotiable Instrument.      

a)   Postal Order                       

b)   Cheque                       

c)   Share Warrant                       

d)   Bill of Exchange                       

Question 6:- Which of the statement /options is true, in relation to Negotiable Instruments?            

a)   No person in India, other than RBI or the Central Government can make or issue a promissory note “payable to bearer”.                       

b)   No person in India other than RBI or the Central Government can draw or accept a bill of exchange ‘payable to bearer on demand’.                        

c)   Both options under A and B are correct                       

d)   None of the options is True                       

Question 7:- Which of the following is wrong statement in connection with a Custom to be valid as a `source` of law ?          

a)   custom must be observed continuously for a very long time.                       

b)   custom must be supported by public opinion                       

c)   Custom must not conflict with any statute                       

d)   Legislation cannot override an established custom.                       

Question 8:- A pays Rs. 10000 in consideration pf B`s promise to deliver his dog. The dog is dead at the time of the promise. Mark the correct statement as a consequence of given facts;

a)   The agreement is valid but B must repay A the sum of Rs 10000 received by him from A                       

b)   The Agreement is Void, but B must repay A the money received i.e. Rs 10000.                       

c)   A is entitled to receive damages worth double the amount paid to B                       

d)   There will be no follow up as the agreement is frustrated by death of the Dog                       

Question 9:- A invites B for dinner in a restaurant. B accepts the invitation. On the appointed , B goes to the restaurant; to his utter surprise A is not there. What legal remedy, if any is available to B against A?        

a)   Enjoy his dinner and send the bill to A.                       

b)   File a legal suit for damages to include the costs of travel, dry-cleaning charges for the jacket, and the cost paid to advocate for instituting the suit.                       

c)   A shall have no legal remedy against B.                       

d)   B shall have no legal remedy against A                       

Question 10:- A, by misrepresentation leads B to believe that 500 kg of Indigo are made annually at A`s Factory. B examines the account of the Factory which shows that only 400 kg of Indigo was made. After this B buys the Factory. Which of the following is the correct statement as per Contract Act?             

a)   The contract is voidable on account of A`s misrepresentation                       

b)   The contract is not voidable on account of A`s misrepresentation.                       

c)   A will compensate B to the extent of profits on sale of 100 kg of Indigo for three years.                       

d)   This contract for sale of Factory is not governed by Contract Act.                       

Question 11:- A lends a car to B for his own driving only. B allows C, his wife , to drive the car. C drives with care, but the car gets damaged in an accident. Will B be liable to pay for consequent repairs to the car?             

a)   NO, it is gratuitous bailment, A will bear the expenses for repair.                       

b)   YES, B is liable to pay for damages as he made an unauthorised use of the car.                       

c)   Yes because car got damaged when it was bailed to B for his driving                       

d)   NO, because B`s wife and A`s wife are good friends.                        

Question 12:- A buys goods of B and property in the goods has passed to him; but the goods remain in B`s warehouse and the price is unpaid. Before delivery, a fire burns down the warehouse destroying the goods. Who will bear the loss as per Sales of Goods Act?

a)   Loss will be borne by B as the goods were in his possession.                       

b)   Loss will be borne by A, as the property has passed to him, though price remains unpaid.                       

c)   Loss will be borne by B, as A has not yet paid for the goods nor taken delivery thereof.                       

d)   Loss will be shared between A and B as decided by Arbitrator                       

Question 13:- C advances to B, his tenant, Rs. 200000 on the guarantee of A. C has also a further security for the Rs 200000 by a mortgage of B`s furniture. C cancels mortgage. B becomes insolvent and C sues A on his guarantee. Decide.

a)   A will be liable to C as he had given a guarantee for Loan advanced to B.                        

b)   First C will take possession of Furniture of B, sell it, only the shortfall will be paid by A                       

c)   A is discharged from liability to the extent of the value of security , unless he consented to release of such security                       

d)   A is discharged from liability completely as his consent was not take before cancellation of mortgage on furniture                       

Question 14:- A gives authority to B to sell A`s land and to pay himself out of the proceeds , the debts due to him from A. B goes insane; can A revoke his authority?         

a)   YES, Principal can revoke agency at his will.                       

b)   NO, A cannot revoke this agency/authority, nor can it be terminated by his insanity or death.                       

c)   Yes, because B has since gone insane.                       

d)   NO, as consent from B is required to revoke the agency and he has gone insane                       

Question 15:- The celebrated case of Carlill Vs. Carbolic Smoke Ball is an example of:       

a)   a minor cannot enter into a valid contract.                       

b)   Contract is voidable at the option of the person whose consent has been obtained by undue influence                       

c)   What is `a general Offer`                       

d)   What is the difference between a specific offer and a general offer                       

Question 16:- A sold his business to B and agreed not to compete with him for a given number of years , within reasonable local limits. A, desirous of re-entering business , in violation of the contractual obligation, formed a private company with majority shareholdings. B filed a suit against A and his company for going ahead with the competing business. in violation of the Contract. Decide;           

a)   B cannot file a case against the company thus formed, as company is a separate legal entity from A.                       

b)   A is not liable for the actions taken by the Company as he is only a shareholder of the Company.                        

c)   B should get the relief as A formed the company with majority shareholding to avoid own valid legal contractual obligation, not to enter competing business.                       

d)   B should take over all shareholdings of A in the new company at a price to be decided by the Court                       

Question 17:- A Company has the power to borrow money , but the Articles of the Company provide that in case the directors borrow more than Rs. 5 Crore they require prior approval by the company in general meeting. The Directors issued debentures to the extent of Seven Crores without obtaining approval from shareholders. How can this issue which is ultra vires the powers of Directors but intra vires the powers of the Company be resolved?             

a)   since the Directors exceeded their powers, money will be returned to debenture holders within a month.                       

b)   The act which is intra-vires the powers of the company but ultra -vires the powers of the directors may be regularised by ratification in general meeting of the company.                       

c)   There is no way to regularise the actions which are ultra-vires the powers of Directors.                       

d)   Since the directors act on behalf of the Company, whatever the Company can do,, can be done by directors and there is no irregularity in actions of the directors.                       

Question 18:- In a Sale of vegetable glue, packed in casks, the buyer comes to examine them, but simply looks at the outside of the casks. The defect could have been discovered by examination. Later on delivery of the casks the buyer raises a plea that Implied Condition as to Merchantable quality subsists. Decide.            

a)   Buyer is right in claiming that there is an implied condition that goods must be merchantable, and breach of this condition entitles him to return the goods                       

b)   The defect which could have been discovered by examination is overlooked. The implied condition of merchantability is not applicable.                       

c)   The buyer , can take the plea the he overlooked the examination as generally such casks contain glue which has no defects.                       

d)   None of the options is True.                        

Question 19:- Find the correct statement about liability of parents/ guardians in Contracts by minors:           

a)   A minor`s parents/ guardians are not liable to his creditors for breach of a contract by him.                       

b)   The minor`s parents/ guardians are not liable to creditors for the breach of contract by him whether the contract is for necessaries of life or not.                       

c)   The parents/ guardians will be liable when the minor is acting as their agent.                        

d)   All statements/ options are True                       

Question 20:- Which of the following criteria must be satisfied so as to be known as `holder in due course` in case of a Negotiable Instrument?      

a)   he must have obtained the instrument before maturity                       

b)   the instrument is not incomplete or irregular and does not have any defect on the face of it                       

c)   he must have taken the instrument in good faith and without notice of any defect in the title of the person from whom he derived his title.                       

d)   All the three criteria listed in the options are to be satisfied.                       

Case Study

Conducting (Virtual) Annual Meetings in Light of COVID-19

With rising concerns around the spread of corona-virus globally, many public companies have already postponed their annual meetings over the course of last week, due to health concerns or partial lockdowns often prohibiting public gatherings. Numerous companies as Daimler, Deutsche Telekom and others have postponed their meetings, while others such as Schindler or Berkshire Hathaway will hold their meetings without the public and only with proxy representatives. Numerous other issuers on the Continent are considering adding a virtual component to the format of their annual shareholder meetings in order to mitigate health risks ("hybrid") meetings. While the general meetings of the Spanish banks Santander or BBVA are set to go ahead, the banks are encouraging shareholders to participate remotely, to protect the wellbeing of the investors. HSBC in the UK has already warned its shareholders of the potential COVID-impact on its shareholder meeting, recommending to vote via proxy. Depending on the country, AGMs may be a needed precursor for operational items; some countries require shareholder approval to make dividend payments. Shareholder associations across different jurisdictions are asking governments for forbearances that will allow them to pay dividends even if a general meeting is postponed. Other jurisdictions, as France, Spain or Netherlands already allow for interim dividend payments. Postponing the Meeting It is clear that globally, issuers are putting in contingency plans in order to prepare for a potential delay of their meetings or to find hybrid solutions in order to fulfil legal requirements while mitigating risk. The most obvious of these is delaying the meeting date. Generally, in most jurisdictions AGM`s can be delayed up to 8 months (or 6 months for European SE`s), but the question on dividend-payments is often not resolved. Keeping in view the provisions of Companies Act 2013 and assuming normalcy has come back after COVID-19 has been beaten back.

Answer the following Questions related to Annual General Meeting of a Public limited Company with its Registered Office at New Delhi: 

Question 21:- Which of the statements about frequency of holding Annual General Meeting of the company is True?           

a)   Every company, whether public or private, having share capital or not, limited or unlimited must hold Annual General meeting.                       

b)   Annual general meeting must be held in each calendar year and not more than fifteen months shall elapse between meetings                       

c)   Annual General Meeting must be held on a day which is not a public holiday,                       

d)   Any business other than ordinary business transacted at the meeting will be deemed to be special business.                       

Question 22:- An Extra-ordinary General Meeting may be called by:        

a)   By directors on their own accord                       

b)   By directors on requisition                       

c)   By requisitionists themselves                       

d)   all options/ statements are True                        

Question 23:- Which of the options is true in relation to Quorum at a shareholders` Meeting?

a)   Number of members sufficient to transact business at a meeting is Quorum.                       

b)   Quorum for the meeting is generally fixed by Articles of the Company; Articles however cannot reduce the number given in the Act as minimum number to form a quorum.                       

c)   Any resolution passed without the quorum is invalid                       

d)   All the statements/ options are correct                       

Question 24:- Some resolutions require special notice. Examples of such resolutions are- appointing an auditor, a person other than a retiring auditor, removing a director before his term expires. Which of the options that follow are False in relation to Resolutions requiring special notice?        

a)   under this, a notice of intention to move resolution should be given to the company not less than 21 days before the date of meeting at which it is proposed to be moved                        

b)   under this, a notice of intention to move resolution should be given to the company not less than 14 days before the date of meeting at which it is proposed to be moved                       

c)   The company in turn must immediately give notice by advertisement in a newspaper or in any other mode allowed by Articles, but not less than seven days , before the meeting                       

d)   None of the options is false                       

Question 25:- Companies Act 2013, provides that every company shall include in the `directors report` a statement of its directors` responsibility statement which shall, among other things, indicate that :           

a)   in preparation of the annual accounts , the applicable accounting standards had been followed;                       

b)   the directors had taken proper and sufficient care for the maintenance of adequate accounting records so as to safeguard the company`s assets and to detect frauds and irregularities;                        

c)   the directors had prepared the annual accounts on a `going concern` basis.                       

GM07

Subject Code: GM07

Subject Name: RESEARCH METHODOLOGY

Component name: TERM END

Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- Mean, Median and Mode are

a) Measures of deviation

b) Ways of sampling

c) Measures of control tendency

d) None of the above

Question 2:- Research is

a) Searching again and again

b) Finding solution to any problem

c) Working in a scientific way to search for truth of any problem

d) None of the above

Question 3:- Which of the following is the first step in starting the research process?

a) Searching sources of information to locate problem.

b) Survey of related literature

c) Identification of problem

d) Searching for solutions to the problem

Question 4:- A common test in research demands much priority on

a) Reliability

b) Usability

c) Objectivity

d) All of the above

Question 5:- Action research means

a) A longitudinal research

b) An applied research

c) A research initiated to solve an immediate problem

d) A research with socioeconomic objective

Question 6:- A reasoning where we start with certain particular statements and conclude with a universal statement

is called

a) Deductive Reasoning

b) Inductive Reasoning

c) Abnormal Reasoning

d) Transcendental Reasoning

Question 7:- Which of the following variables cannot be expressed in quantitative terms?

a) Socio-economic Status

b) Marital Status

c) Numerical Aptitude

d) Professional Attitude

Question 8:- The essential qualities of a researcher are

a) Spirit of free enquiry

b) Reliance on observation and evidence

c) Systematization or theorizing of knowledge

d) All the above

Question 9:- In the process of conducting research ‘Formulation of Hypothesis” is followed by

a) Statement of Objectives

b) Analysis of Data

c) Selection of Research Tools

d) Collection of Data

Question 10:- A research paper is a brief report of research work based on

a) Primary Data only

b) Secondary Data only

c) Both Primary and Secondary Data

d) None of the above

Question 11:- Which of the following is non-probability sampling?

a) Snowball

b) Random

c) Cluster

d) Stratified

Question 12:- Which method can be applicable for collecting qualitative data?

a) Artifacts (Visual)

b) People

c) Media products ( Textual, Visual and sensory)

d) All of these

Question 13:- Testing hypothesis is a

a) Inferential statistics

b) Descriptive statistics

c) Data preparation

d) Data analysis

Question 14:- What is the purpose of doing research?

a) To identify problem

b) To find the solution

c) Both (a) and (b)

d) None of these

Question 15:- In group interview there are

a) One interviewer and one interviewee

b) More than one interviewer and one interviewee

c) One interviewer and more than one interviewee

d) More than One interviewer and more than one interviewee

Question 16:- When using a Likert scale with a long list of items, it is usually better to:

a) Arrange the answers horizontally, in abbreviated form.

b) List the answers vertically, for each consecutive item.

c) Omit any instructions about how to select an answer.

d) List all questions on one page and all answers on another

Question 17:- How would you define `the research process`?

a) The researcher`s plan of action to be followed when carrying out research

b) A method of collecting research data

c) The stages or steps the researcher follows in carrying out a research project

d) The account of a study the researcher will write at the end of the study ready for publication

Question 18:- What are important factors in doing demand forecasting?

a) Demand in consistent

b) Demand is fluctuating

c) Demand has no pattern

d) None of above

Question 19:- What is a hypothesis?

a) A statement that the researcher wants to test through the data collected in a study

b) A research question the results will answer

c) A theory that underpins the study

d) A statistical method for calculating the extent to which the results could have

Question 20:- What you mean by Survey Method

a) A method used for collecting data from a pre-defined group of respondents to gain information and insights on

various topics of interest

b) A method used to collect sample of selected group

c) A method used for collecting data from entire population

d) None of above

Case Study

Shri Ram Consultants have been appointed by a leading group in the hotel industry to prepare a feasibility report for

opening a five-star hotel in Pune. The group had been most successful one in the hotel industry and had always kept

its eyes open for new opportunities. In view of the very fast industrial growth in the city of Pune, the city had

attracted the attention of the group. Pune, apart from being a modern city, has the added advantage of pleasant

weather and several places of tourist attraction in the neighbourhood. Moreover, closeness to Mumbai, city of

international stature, has made it very easily accessible to international tourists.

For Shri Ram Consultants this was the first time that an assignment concerning the hotel industry has been received.

They, however, soon realized that the assignment was not a simple as it appeared to be in the first place. The

feasibility of such a hotel would depend essentially on two factors. Businessmen, visiting the city for work would

constitute one segment of the market, while tourists would constitute the other. Further, the tourists could be

Indians or foreigners. The success of such a hotel would also depend upon the relative attraction of other tourist

centres in the vicinity. Further, it was necessary to estimate fluctuations in demand for hotel accommodation so that

attractive discounts could be offered during the off-season for business, conferences, executive development

programmes, etc.

The consultants realized that they would have to undertake market research on a national scale to assess the tourist

potential of the city. They would also have to survey the foreign tourists to estimate one of the most important

segments of the market.

The consultants wondered whether such a survey would have to extend over a period of one full year to completely

take into account the seasonal variations in tourist traffic. They were also undecided about the manner in which a

survey should be conducted. The company also feared that in the absence of accurate definition of the problem, they

might land up surveying the complete tourist market in India rather than studying the feasibility of a hotel in Pune.

They had heard that ITDC had appointed lady interviewers at several major airports for conducting such surveys and

wondered if such a methodology could be of use to them.

The problem appeared more defined and they were concerned as the preliminary report explaining the methodology

of the research and the questionnaires to be used had to be submitted to the client along with an estimate of

expenses within one month.

Question 21:- What you mean by the term ‘ Structured Questionnaire’

a) Structured questionnaire is a document that consists of a set of questions with a fixed scheme, which specifies

the exact wording and order of the questions, for gathering information from respondents.

b) Structured questionnaire is a document that consists of a set of standardized questions with a fixed scheme,

which specifies the exact wording and order of the questions, for gathering information from

respondents.

c) Structured questionnaire is a document that consists of a set of standardized questions with a fixed scheme,

which specifies no exact wording and order of the questions, for gathering information from

respondents.

d) Questions need to be in a structured pattern but specifies the exact wording and order of the questions, for

gathering information from respondents.

Question 22:- Which of the following should not be a criterion for a good research project in above Case?

a) Demonstrates the abilities of the researcher

b) Is dependent on the completion of other projects

c) Demonstrates the integration of different fields of knowledge

d) Develops the skills of the researcher

Question 23:- The main objective in above case study is

a) To prepare a feasibility Report

b) To set up a hotel

c) To attract Tourists

d) To develop infrastructure

Question 24:- Which segments are most crucial for Sampling in above case study

a) Local Population

b) Domestic Tourist

c) Businessmen

d) Businessmen & Indian and Foreign Tourists

Question 25:- Which method of data collection is used in the case study

a) Survey Method

b) Census Method

c) Probability Analysis

d) None of above

                 

Question 1:- Identifying a set of feasible alternatives and choosing a course of action is called   
   
a)    decision making                       

b)    choice making                       

c)    problem solving                       

d)    a decision                       



Question 2:- The process of MBO (Management By Objective) consists of the following steps except:   
   
a)    Goal Setting                       

b)    Action Planning                       

c)    Mentoring                       

d)    Appraising Performance                       



Question 3:- The management school that believed a basic set of laws govern the correct way of performing work, the design of the organizational machine, and management practice was known as the   
   
a)    Behavioural School                       

b)    Economic Rationality School                       

c)    Scientific School                       

d)    Classical School                       



Question 4:- The focus of the Hawthorne studies was   
   
a)    work and work methods                       

b)    the work context                       

c)    job involvement                       

d)    the formal organization                       



Question 5:- The obligation to engage in activities that protect and contribute to the welfare of society is called   
   
a)    social responsiveness                       

b)    social responsibility                       

c)    social obligation                       

d)    the principle of stewardship                       



Question 6:- When managers establish goals and specify how these goals are to be attained, they are exercising the process of   
   
a)    management by objectives                       

b)    planning                       

c)    strategic management                       

d)    budgeting                       



Question 7:- The planning process consists of which of the following patterns?   
   
a)    awareness-premises-set goals-determine course of action-develop support plans                           
b)    premises-awareness-set goals-determine course of action-develop support plans                           
c)    premises-awareness-set goals-develop support plans-determine course of action                           
d)    awareness-set goals-premises-determine course of action-develop support plans                           


Question 8:- Effective leadership requires the exercise of   
   
a)    patience                       

b)    understanding                       

c)    ability to motivate and manage conflict                       

d)    politics                       



Question 9:- According to Fiedler, the most favourable situation for a leader is   
   
a)    low task structure, strong position power, and good leader relations                       

b)    high task structure, strong position power, and poor leader relations                       

c)    high task structure, weak position power, and good leader member relations                           
d)    high task structure, strong position power, and good leader member relations                           


Question 10:- An overriding principle of Maslow’s theory of needs is:   
   
a)    people are driven by self-actualization                       

b)    the fact self-actualization is never achieved                       

c)    that a person’s direction and intensity will be focused on satisfying the lowest level need that is not currently satisfied                           
d)    people go through the five levels in a mechanical fashion                       



Question 11:- An internal state that energizes, directs, and sustains behaviour is known as:   
   
a)    ability                       

b)    effort                       

c)    intensity                       

d)    motivation                       



Question 12:- The Balanced Score Card measures all of the following except:   
   
a)    financials                       

b)    competition                       

c)    customers                       

d)    learning and growth                       



Question 13:- Organizing includes all the following steps except"   
   
a)    Determination of objectives                       

b)    Identification and grouping of activities                       

c)    Assigning of duties                       

d)    motivating employees                       



Question 14:- Which of the following can not be considered as an advantage of Line and Staff Organization?   
   
a)    Flexibility                       

b)    Better decisions                       

c)    Better conflict resolution                       

d)    Unity of command                       



Question 15:- Formal and informal organizations differ from each other in respect of their   
   
a)    Origin                       

b)    Purpose                       

c)    Structure                       

d)    All of these (A, B and C).                       



Question 16:- The degree of group cohesiveness is determined by   
   
a)    Status of the group                       

b)    Size of the group                       

c)    Leadership style                       

d)    All of these (A, B and C).                       



Question 17:- Organizational Behaviour is the study of all the following except:   
   
a)    human behaviour in organizational setting                       

b)    the interface between human behaviour and the organization                       

c)    market                       

d)    organization                       



Question 18:- Learning is a relatively permanent change in behaviour that results from   
   
a)    direct experience                       

b)    indirect experience                       

c)    direct or indirect experience                       

d)    None of these (A, B and C).                       



Question 19:- Which of the following is not a major determinant of personality?   
   
a)    Situational factors                       

b)    financial factors                       

c)    Biological factors                       

d)    Family and social factors                       



Question 20:- Which of the following can not be considered as a determinant of job satisfaction?   
   
a)    Extrinsic nature of rewards                       

b)    Work conditions                       

c)    Nature of job                       

d)    Work-group                       


Case Study

Tolerating Mistakes: The IBM Way Tom Watson, Sr., showed the best example of behaviour consistent with values, even under difficult circumstances, when he ran IBM. One day, a junior executive who had made a $10 Million mistake was called into Watson `s office. Because of his costly blunder, the employee assumed he was about to be fired. But Watson believed then, as many of his followers believe now, that one of the most critical values at IBM is the development of people. So, when the junior executive asked if he was being fired, Watson quickly responded with an emphatic "NO". Then, Watson added, "I just spent $10 Million educating you-why would I want to fire you now?" Such exemplary consistency with a set of values could not fail to create an enormously high level of employee trust and set a model for all other leaders and associates.   


Question 21:- The decision to not fire the junior executive is likely to result in the following behavioural changes in the executive except   
   
a)    improved degree of commitment to work                       

b)    more casual approach towards work                       

c)    Increased degree of confidence                       

d)    More trust and respect towards management                       



Question 22:- The leadership style of Tom Watson, Sr as reflected in this case can be termed as   
   
a)    Authoritative                       

b)    Participative                       

c)    Development oriented                       

d)    Consultative                       



Question 23:- Employees like the junior executive in this case, who feel fairly treated by and are trusting of the organization are   
   
a)    motivated to complete their work in time                       

b)    maintains same level of performance in future also                       

c)    more willing to engage in behaviours that go beyond the normal expectations of their job                           
d)    likely to become complacent                       



Question 24:- The degree to which the executive in this case identifies with IBM, the organization and its goals and his wish to maintain membership in the organization is referred as,   
   
a)    Organizational commitment                       

b)    Job involvement                       

c)    Cognitive dissonance                       

d)    A and B both                       



Question 25:- An attitude to behave in a certain way toward someone or something is/are   
   
a)    behavioural component of an attitude                       

b)    affective component of an attitude                       

c)    cognitive component of attitude                       

d)    A and B both   

Question 1:- Most business communication is transactional, which means?   
   
a)    Sending Information                       

b)    Receiving Information                       

c)    Give & Take Relationship between the sender and the receiver                       

d)    None of the Above                       



Question 2:- Which of the following is an example of unethical communication"   
   
a)    Gatekeeping                       

b)    Plagiarism                       

c)    Persuading others                       

d)    Clarifying Information                       



Question 3:- The word communication is derived from a Latin word "COMMINIS", which means?   
   
a)    Community                       

b)    Common                       

c)    Conveying                       

d)    None of the Above                       



Question 4:- Which form of communication make use of gestures, pictures and facial expressions for exchanging information between two persons?   
   
a)    Written Communication                       

b)    Oral Communication                       

c)    Non-Verbal Communication                       

d)    None of the Above                       



Question 5:- Name the skills of communications?   
   
a)    Reading & Writing                       

b)    Speaking & Listening                       

c)    None of the above                       

d)    Both A and B                       



Question 6:- The informal channel of communication is also known as?   
   
a)    Formal Communication                       

b)    Grape Wine                       

c)    None of the above                       

d)    All of the above                       



Question 7:- Which type of communication includes flow of information among persons at different levels, who have no direct reporting relationships?   
   
a)    Diagonal Communication                       

b)    Lateral Communication                       

c)    Inward Communication                       

d)    Outward Communication                       



Question 8:- Name the term which defines the unique information about the Job, owned by individuals and cannot be shared freely?   
   
a)    Information Ownership                       

b)    Formal Communication                       

c)    Informal Communication                       

d)    None of the Above                       



Question 9:- Which of the following 7C`s of effective communication has its relevance in improving relationships?   
   
a)    Credibility                       

b)    Courtesy                       

c)    Concreteness                       

d)    Conciseness                       



Question 10:- Which of the following is a type of semantic barrier?   
   
a)    Status Relationships                       

b)    Badly Expressed Message                       

c)    Bypassing                       

d)    Information Overload                       



Question 11:- Name the type of individual barrier - "People do not listen carefully because of impressions based on earlier encounters"?   
   
a)    Closed Mind                       

b)    Selective Perception                       

c)    Inattention                       

d)    Hallow Effect                       



Question 12:- Which of the following acts as barriers or disturbance in the channel of communication?   
   
a)    Defects in the medium                       

b)    Meta communication                       

c)    Noise                       

d)    All of the above                       



Question 13:- Which of the following sign language is used by the sender and receiver in communication?   
   
a)    Voice                       

b)    Word Stress                       

c)    Colours                       

d)    Visual Signs, Audio Signs & Touch                       



Question 14:- What do you mean by Oral communication?   
   
a)    Written Communication                       

b)    Communication through Gestures                       

c)    Spoken Communication                       

d)    None of the Above                       



Question 15:- Which of the following strategy is adopted by the sender and the receiver in conversation?   
   
a)    Listening                       

b)    Back Channelling                       

c)    Convictions                       

d)    Logical Sequence                       



Question 16:- The purpose of a meeting is to ________?   
   
a)    Instruct a Group                       

b)    Discuss & Solve Problems                       

c)    Safe Time on Communication                       

d)    All of the above                       



Question 17:- Which of the following type of interview assumes a hostile role towards the applicant?   
   
a)    Free Interview                       

b)    Death Interview                       

c)    Stress Interview                       

d)    Patterned Interview                       



Question 18:- Which of the following qualities need to be incorporated while participating in GD?   
   
a)    Leadership                       

b)    Assertiveness                       

c)    Flexibility                       

d)    All of the above                       



Question 19:- Which approach to listening attempts to distinguish one sound from all the other?   
   
a)    Comprehensive Listening                       

b)    Discriminative Listening                       

c)    Active Listening                       

d)    Critical Listening                       



Question 20:- Name the elements of the Communication Process?   
   
a)    Sender & Receiver                       

b)    Message & Medium                       

c)    Feedback                       

d)    All of the above                       


Case Study

The unaccepted current regulator proposal:-The Acme Electric Company worked day and night to develop a new current regulator designed to cut the electric power consumption in aluminium plants by 35%. They knew that, although the competition was fierce, their regulator could be produced more cheaply, was more reliable, and worked more efficiently than the competitors’ products. The owner, eager to capture the market, personally but somewhat hastily put together a 120-page proposal to the three major aluminium manufacturers, recommending that their regulators be installed at all company plants. She devoted the first 87 pages of the proposal to the mathematical theory and engineering design behind his new regulator, and the next 32 to descriptions of the new assembly line she planned to set up to produce regulators quickly. Buried in an appendix were the test results that compared her regulator’s performance with present models, and a poorly drawn graph showed how much the dollar savings would be. Acme Electric didn’t get the contracts, despite having the best product. Six months later, the company filed for bankruptcy.   


Question 21:- Did Acme electric had chance to capture the market ?   
   
a)    yes                       

b)    No                       



Question 22:- Did Acme electric`s proposal was a well drafted document ?   
   
a)    yes                       

b)    No                       



Question 23:- Which out of the following should have been emphasized more in proposal ?   
   
a)    mathematical theory                       

b)    engineering design                       

c)    Assembly line                       

d)    comparative and cost saving analysis                       

Question 24:- Where did Acme electric go wrong in loosing the contracts?   
   
a)    drafting proposal                       

b)    marketing strategy                       

Question 25:- Are there any chances of recovery for Acme electric as of now ?   
   
a)    yes                       

b)    No 

             

Subject Code: GM13

Subject Name: ENTREPRENEURIAL MANAGEMENT

Component name: TERM END   Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- Which of the following factors does not affect a person for being an entrepreneur?          

a)   Family background                       

b)   Education                       

c)   Personal values                       

d)   Gender                       

Question 2:- Naryana Murthy(Infosys) is what type of Entrepreneur?      

a)   Founder                        

b)   Pure Entrepreneur                       

c)   Technical Entrepreneur                       

d)   Second Generation Entrepreneur                       

Question 3:- “High potential venture” :  

a)   Has the same growth potential as a life style firm                       

b)   Starts out like a life style firm                       

c)   Draws the interest of private investors only                       

d)   None of the above                       

Question 4:- The most sensitive plan in the business plan is         

a)   Operational Plan                       

b)   Marketing Plan                       

c)   Financial Plan                       

d)   Production Plan                       

Question 5:- An entrepreneur who runs a business, sells it and moves onto another venture in a relatively short time is called           

a)   a failed entrepreneur                       

b)   a serial entrepreneur                       

c)   a multiple entrepreneur                       

d)   Modern Entrepreneur                       

Question 6:- Entrepreneurs take financial, _________, and ____________ risks.    

a)   psychological, social                       

b)   psychological, environmental                       

c)   social, environmental                        

d)   None of the above                       

Question 7:- Which of the following is usually included in a business plan?             

a)   detailed description of the product or service                       

b)   marketing and promotional plans                        

c)   management and staffing                       

d)   All of the given                       

Question 8:- The best way to buy a business is _______ 

a)   acquisition of shares                       

b)   acquisition of assets                       

c)   acquisition of product                       

d)   None of the above                       

Question 9:- Minimum number of director in private limited company    

a)   2                       

b)   3                        

c)   4                       

d)   5                       

Question 10:- A market survey is important because it tells you:

a)   How many & what types of people are shopping at a store                       

b)   Tells you what the customer will buy                       

c)   Tells you how much the customer will pay for the product.                       

d)   All of the given options                       

Question 11:- The four factor of production are………….. 

a)   Land, Labor, Capital, Entrepreneurship                       

b)   Land, Labor, Reforms, Capital                       

c)   Land, Labor, People, Entrepreneurship                       

d)   None of the given                       

Question 12:- Which type of Job analysis enlists the qualification of individual?             

a)   Job Description                       

b)   Job Specification                       

c)   Job identification                       

d)   All of the given options                       

Question 13:- The difference between the value of a country’s imports and exports over time is called          

a)   Deficit exports                       

b)   Deficit imports                       

c)   Balance of Payment                       

d)   Balance of Debt                        

Question 14:- Combination of at least two firms at different market levels is called:  

a)   Joint Venture                       

b)   Synergy                       

c)   horizontal merger                       

d)   Vertical Merger                        

Question 15:- Which of the following is the backbone of financial plan?  

a)   Budgeting                       

b)   Capital                       

c)   Nature of business                       

d)   All of the given options                        

Question 16:- Corporate entrepreneurship is sum total of _____

a)   company`s innovation, venturing and renewal efforts                       

b)   innovation, creativity and land                       

c)   capital, creativity, collaboration, and commitment                       

d)   none of the given                       

Question 17:- What is a target market? 

a)   A group of customers a venture reaches by accident                       

b)   All consumers who purchase the venture’s product                       

c)   A specific group of potential customers toward which a venture aims its marketing plan                       

d)   A chain of discount stores                       

Question 18:- Venture Capital is concerned with

a)   New Project having potential for higher profit                       

b)   New Project of high technology                       

c)   New Project having high risk                       

d)   all of the given                       

Question 19:- _______________ provide equity capital to high risk ventures which face shortage of financing             

a)   Banks                       

b)   Venture Capitalists                       

c)   Small Finance Lenders                       

d)   None of the above                        

Question 20:- E-entrepreneur is also can be called as      

a)   Classical Entrepreneur                       

b)   Industrial Entrepreneur                       

c)   Internet Entrepreneur                       

d)   None of the above                       

Case Study

Retail entrepreneurship development in India: A case study of big bazaar The Indian retail industry has strong linkages with the economic growth and development of the economy. India is one of the largest emerging markets. It is one of the largest economics in the world in terms of purchasing power. Retailing in India is at an emerging stage of its evolution. Organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. Many semi-rural areas have also witnessed entry of such organized retail outlets. Indian retail industry is currently estimated at US$ 490 billion. India’s retail market is expected to touch a whopping Rs 47 trillion (US$ 782.23 billion) by 2016-17, expanding at a compounded annual growth rate (CAGR) of 15 percent, according to a study by a leading industrial body. The total organized retail supply in 2013 stood at approximately 4.7 million square feet (sq.), witnessing a strong year-on-year (y-o-y) growth of about 78 percent over the total mass supply of 2.5 million sq. in 2012. The foreign direct investment (FDI) inflows in single-brand retail trading during the period April 2000-January 2014 stood at US$ 98.66 million. Retailing as a whole contributes almost 14-15% of India’s GDP and employs almost 8% of India’s employable population. Big Bazaar is credited with bringing organized mega retailing to India. The project was conceived as a uniquely Indian hypermarket in a format that combined the look, touch and feel of Indian bazaars with the comfort, convenience and quality that modern retailing brings. Launched in August 2001, Big Bazaar has now become the iconic destination of modern retailing for all sections of Indian consumers. There are more than hundred Big Bazaar stores in big cities as well as smaller towns like Sangli, Durgapur, Panipat, Palakkad, Ambala, Meerut, Kolhapur and Haldia. Attracting over 100 million customers every year, it has democratized shopping in India and become synonymous with great promotions that offer quality products at affordable prices. This typical Big Bazaar store offers over 1,60,000 products across categories like apparel, general            

Question 21:- Kishore Biyani known as ……          

a)   Second generation entrepreneur                       

b)   serial entrepreneur                       

c)   founder or first generation entrepreneur                       

d)   E-entrepreneurship                       

Question 22:- What are the entrepreneurial opportunities you can find in retail sector in India?    

a)   Open Rural Market                       

b)   Competition                       

c)   Internet                       

d)   none of the given                       

Question 23:- Biggest competitor of big bazar is…..         

a)   Dmart                       

b)   Amazon                       

c)   Flipkart                       

d)   Reliance Mart                       

Question 24:- Sabse saste 5 din` is indirectly compete with which internet model of billion days sale           

a)   Amazon                       

b)   Flipkart                       

c)   Grofers                       

d)   Big Basket                       

 Question 25:- How Big Bazaar retail store would retain its business in today’s competitive world among retail firms?  

a)   Collaboration or Tie-ups                       

b)   Internet and collaboration                       

c)   opening more stores                       

d)   none of the given options                       

Subject Code: GM14

Subject Name: STRATEGIC MANAGEMENT & ETHICS

Component name: TERM END   Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- Point out the correct/ True statement         

a)   Financial control is based on measures of financial parameters.                       

b)   Behaviour control specifies how something is to be done through policies, rules, standard operating procedures etc.                       

c)   Implementation Control requires monitoring strategy implementation performance.                       

d)   All statements are true                       

Question 2:- Corporate scandals underscore the fact that corporate irresponsibility has become a grave threat to the long term health and prosperity of businesses. Confidence can be restored through :  

a)   greater emphasis on business ethics                       

b)   more rigorous corporate governance                       

c)   more robust disclosure and reporting                       

d)   all options are true                       

Question 3:- Which of the following is not an element of `Cultural Web` of an organisation?            

a)   Stories                       

b)   Symbols                       

c)   Strategic Direction                       

d)   Organisation Structure                       

Question 4:- Which of the following is not part of `Action-Centred` Leadership Model?        

a)   Individual                       

b)   Team                       

c)   Task                       

d)   Hierarchy                       

Question 5:- Which of the following is not an `Issue` in understanding complexity of `Family Business`?             

a)   similar educational levels                       

b)   sibling rivalries                       

c)   Differences in attitude towards employees                       

d)   Differences in `Value System`                       

Question 6:- Micro and Family businesses have an advantage of:

a)   Financial clout                       

b)   Lack of bureaucracy                        

c)   staying power                       

d)   technological resources                       

Question 7:- Which of these statements are true?           

a)   Matrix Structure provides for lateral chains of influence                       

b)   Horizontal structure is organised according to organisational outputs with a focus on results than on means                       

c)   Both the statements are correct.                       

d)   none of the previous statements are correct                        

Question 8:- A group of companies that form a joint entity for a specific purpose - such as building a channel tunnel, and when project is finished, the group breaks up. Such a long term contractual form is called:             

a)   Franchising.                        

b)   Consortia                       

c)   Strategic Partnership                       

d)   Personnel Secondment                        

Question 9:- Which of the following is a `False` Statement?         

a)   A business portfolio is collection of Strategic Business Units that builds up to different product category.                       

b)   the BCG growth share matrix is directly derived from the pattern of cash flow.                       

c)   Question Marks are products that have poor cash characteristics because of high demands and low returns.                       

d)   The BCG Matrix highlights the need for management to look into the products and analyse their performance based on the fact that the life of product is finite.                        

Question 10:- Which statement(s) are true in respect of `experience curve`?

a)   It depicts the linear relationship between costs and cumulative production                       

b)   As a strategic concept it is based on strong relationships between market share and accumulated production.                       

c)   It shows that It is possible to deliberately acquire and manage competitive advantage.                       

d)   All statements made are true.                        

Question 11:- Which of the following factors may lead to decision about `restructuring the organisation`?            

a)   changing technologies                        

b)   rise in competition                       

c)   both A and B                       

d)   neither A nor B                       

Question 12:- Following are statements about competitive market and marketplace conditions; which of these is `False`?           

a)   Order winning factors are those factors that are essential to maintain your presence in the market like quality or cost                       

b)   A basic characteristic in a competitive market is the effect of the firms` cost cutting, quality -enhancing and speed strategies.                       

c)   Increasing economic value derived from intangible assets.                       

d)   Organisations are required to respond to market place conditions more quickly and structure their enterprises for maximum effectiveness and productivity.                       

Question 13:- Which of the following is NOT a constituent of `Michael Porter`s Five Forces Model?       

a)   Threat of new Entrants                       

b)   Threat of complementary Products                       

c)   Bargaining Power of Suppliers                       

d)   Bargaining Power of Buyers                       

Question 14:- The TOWS Matrix shows the approach to develop competitive advantage in the circumstances that exist. Different quadrants in the Matrix are- S-O, W-O, S-T, and W-T. What is the correct interpretation of Quadrant "S-T"?           

a)   Strategies pursue opportunities that are a good fit to the Company`s strengths.                       

b)   Strategies overcome weaknesses to pursue opportunities.                       

c)   Strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.                       

d)   Strategies establish a defensive plan to prevent the firm`s weaknesses from making it highly susceptible to external threats.                        

Question 15:- Creating Competitive advantage involves consideration of four key factors; two are internal to the organisation while two are external. One of the `External factors` is Industry Opportunities and threats; Which is the other external factor?        

a)   Personal Values of Key Implementers.                       

b)   Societal Expectations                       

c)   Company Strengths and Weaknesses                       

d)   Not mentioned in the options                       

Question 16:- There are two basic types of competitive advantage a firm can possess; low cost or differentiation. Which of the following does not help the organisation to exploit `Economies of Scale` to achieve low cost?;             

a)   Volume of production and overhead costs                        

b)   volume of production and specialized machines                       

c)   Production complexity and sophistication                       

d)   Volume of production and cost of plant and equipment                       

Question 17:- Economic Objective of Business refers to earning profits and other objectives necessary to achieve the profit objective. Other objectives of the Business are- Social, Human, and Global. Which of the following Objectives form part of Economic Objective?     

a)   Adoption of fair trade practices                       

b)   ensuring a minimal ecological footprint                       

c)   both A and B                       

d)   Neither A nor B                       

Question 18:- Point out the correct Hierarchy of Vision, Mission an Objectives:        

a)   Objectives leading to Mission which further Leads to Vision                        

b)   Mission leads to Vision and then to Objectives                       

c)   Vision leads to Mission and Values leading to Objectives                       

d)   all options are correct                       

Question 19:- Which of the statement(s) is correct in the context of `levels of Strategy?      

a)   Corporate Level is also called a Grand Strategy                        

b)   Business Unit Level Strategy is also called Competitive Strategy                       

c)   both a and B are correct                        

d)   neither A nor B is correct.                       

Question 20:- Competence can be improved by a number of tools designed to develop the capacity and ability of managers. These tools are meant to:             

a)   Enhance the flexibility of managers                       

b)   Their capacity to benchmark continuously to achieve the best practices;                        

c)   nurture core competencies to stay ahead of rivals.                       

d)   all statements are correct.                        

Case Study

SAMTEL COLOR LIMITED: CASE STUDY- Samtel Colour was incorporated in 1986 with initial technology from Mitsubishi Electric, Japan. It has a capacity to manufacture approximately 10.2 million tubes per annum at its facilities at Ghaziabad and Kota. Samtel is the largest exporter of colour picture tubes in India and has safety approvals from USA, Canada, Germany and Britain for its products. The Company has a workforce strength of around 1800, a gross sales turnover of around 1100 crore and employs fixed assets valued at about 690 Crore. The Vision, Values, Beliefs Quality Policy , Organisation Culture etc. indicate that the key driving force behind the Company’s activities are; (a) Business Ethics, (b) Open Culture and People striving from within. The whole business formulation process is based on ‘bottom- up and top- down’ process. In this process, all the relevant functional and operational staff provides their inputs to the Strategy Formulation based on Economic survey, Situational Analysis and Competitive Analysis reports etc. through their involvement in teams headed by their respective departmental heads After the presentation of the strategies outlined for the coming three years (which again is reviewed in the normal process in the next year while preparing the strategies for the then coming three years) to CMD and Board of Directors and based on their views, the final set of strategies (Strategy Formulation) are prepared. The coordination of the whole process is carried out by the Vice President (Strategic Planning & Business development). As the whole process has the involvement of all the concerned people at various levels, Strategy Formulation gets owned by the people of the company. Thus the whole process of strategy Formulation is in line with the company’s philosophy. Issues and Questions to be answered as follows:

Question 21:- Competence can be improved by a number of tools designed to develop the capacity and ability of managers. Which capacity and abilities are aimed at in the process?     

a)   Enhance the flexibility of managers;                       

b)   The capacity to benchmark continuously to achieve the best practices.                       

c)   Nurture core competencies to stay ahead of rivals.                        

d)   All statements are true                       

Question 22:- According to Porter, the processes and linkages between activities can be better examined and understood through a Value Chain Analysis. In this context which of the following activities are support activities?          

a)   Inbound logistics.                       

b)   Technology Development                        

c)   Operations.                       

d)   Marketing and Sales                       

Question 23:- Point out the situation(s) / conditions where focus strategy works best:       

a)   When rivals are concentrating on the same target segment.                       

b)   When the Firm possess good amount of resources, and can go after a wider portion of the market.                        

c)   When it is costly for multi-segment rivals to serve the specialised needs of the target market niche                       

d)   When the industry does not have many segments.                       

Question 24:- A leader who expands the followers’ portfolio of needs, Increases the confidence of followers, Elevates follower’ expectations and encourages behavioural change is termed as;    

a)   Behaviourist.                       

b)   Situational Leader                       

c)   Transactional Leader                       

d)   Transformational Leader                       

Question 25:- Good Business Ethics, like democracy, is a lot easier in theory than in practice. Which of the following benefits are derived from good business Ethics?             

a)   These can reduce litigation expenses;                       

b)   Improve organisations morale;                        

c)   Both options A and B are true                       

d)   None of the options is true.